MD_DA770

     Lactose - Central and Western U.S.

     Report 38 - Released on September 19, 2019

     Lactose prices are unchanged this week. A few industry contacts report hearing about edible
     lactose sales well below the bottom of the published price range and feed grade lactose in
     the single digits. African swine fever spreading into the Philippines and South Korea
     heightens concerns that the market challenges created by the disease are far from over. In
     addition, until a trade agreement is reached between the U.S. and China, there will be
     uncertainty in the market. Industry contacts say some buyers in China are actively seeking
     suppliers from outside the United States. And U.S. manufacturers are working hard to develop
     market channels that are not impacted by tariffs. On the other hand, processors say demand
     for infant formula lactose remains solid worldwide, and the recent strong showing at the GDT
     gives a positive indication of the lactose market in Oceania. U.S. lactose inventories are
     large, but a number of manufacturers have kept stockpiles manageable through aggressive
     marketing. Lactose production remains active.
     Prices for: Central and Western U.S., Spot Sales And Up to 3 Month Contracts, F.O.B.,
     Conventional, and Edible Lactose
     Price Range - Non Pharmaceutical; $/LB:                .1800 - .4500
     Mostly Range - Non Pharmaceutical; $/LB:               .2300 - .3550


     Information for the period September 16 - 20, 2019, issued weekly

     Secondary Sourced Information:

     Global Dairy Trade (GDT) Event
     At the GDT Event 244 on September 17, the lactose price for the November contract period was
     $0.3493 per pound, up 5.6 percent.
     Published by:
     Dairy Market News - Madison, WI
     MIKE BANDLI, (608)422-8592
     Email: mike.bandli@usda.gov

     Additional Dairy Market News Information:
     Dairy Market News (DMN) by Phone: (608)422-8602
     DMN Website: https://www.ams.usda.gov/market-news/dairy
     DMN MARS (My Market News): https://mymarketnews.ams.usda.gov